Internal Audit Annual Report Fiscal Year 2020
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Audit and Consulting Services Internal Audit Annual Report Fiscal Year 2020 Lone Star College Audit and Consulting Services Annual Report Fiscal Year 2020 Table of Contents I. Compliance with Texas Government Code, Section 2102.015: Posting the Internal Audit Plan, Internal Audit Annual Report, and Other Audit Information on the website. .............................................................................................................................................................. 2 II. Internal Audit Plan for Fiscal Year 2020 .................................................................................... 2 III. Consulting Services and Nonaudit Services Completed ...................................................... 5 IV. External Quality Assurance Review (Peer Review) ................................................................ 5 V. Quality Assurance Improvement Program ................................................................................ 5 VI. Internal Audit Plan for Fiscal Year 2021 .................................................................................... 8 VII. External Audit Services Procured in Fiscal Year 2020 ........................................................ 10 VIII. Reporting Suspected Fraud and Abuse................................................................................... 10 APPENDIX A: Quality Assurance Review – Independent Validation........................................ 11 APPENDIX B: Fiscal Year 2020 Key Performance Measures ..................................................... 12 Page 1 of 14 Lone Star College Audit and Consulting Services Annual Report Fiscal Year 2020 I. Compliance with Texas Government Code, Section 2102.015: Posting the Internal Audit Plan, Internal Audit Annual Report, and Other Audit Information on the website. The Fiscal Year 2021 approved audit plan will be posted on the department’s website within 30 days of approval. The Fiscal Year 2020 Internal Audit Annual Report will be posted to the website within 30 days of submission. II. Internal Audit Plan for Fiscal Year 2020 Date Project Status 12/18/19 Student Enrollment and Residency Changes Complete 04/15/20 Minors on Campus Complete Distance Learning: LSC Online* Removed Admissions and Registration Process* Removed Grant Program and Financial Monitoring Processes* Removed Chemical Inventory Management* Removed Information Technology Audit – Risk Assessment Project (co-sourced)* Removed Bond Construction Project (co-sourced)* Removed Financial Aid* Removed Projects Added 08/06/20 CARES Act – Student Financial Aid Grant Joint Desk Review Complete LSC-Kingwood Club Sports Review** Reporting Note: * - Project was removed or deferred ** - Project completed; report to be issued in fiscal year 2021 The following are deviations from the fiscal year 2020 audit plan. The Office of Financial Aid had several ongoing initiatives in process from a 2018 audit report and a decision was made to postpone an audit at this time. With the COVID-19 pandemic in spring 2020, Audit and Consulting Services did not start any new planned audits as the College responded to the pandemic. The department instead focused on administrative items and assisting management with other assurance services. This included a joint desk review with the Resource Development and Administration team of the CARES Act – Student Financial Aid Grant. In addition, the department conducted reviews of student drops to ensure compliance with College procedures. Audit and Consulting Services also managed reported incidents of suspected serious acts of dishonesty or fraud. The following provides details of the deficiencies and the current implementation status of the recommendations related to the fiscal year 2020 audit plan. This information addresses requirements of Texas Government Code, Section 2102.015 to post a detailed summary of the weaknesses and deficiencies and a summary of the action taken by management. Page 2 of 14 Lone Star College Audit and Consulting Services Annual Report Fiscal Year 2020 Project Name & Report Responsible Summary of Corrective No. Date Party Summary of Recommendation(s) Action(s) Status 2019-05 12/18/19 Student • Verify the residency status of the • System Office will verify the Implemented Enrollment and three changes noted. residency status. Residency • Ensure controls are in place to • An updated Business Changes monitor for proper categorization of Process and Job Aid will be student residency. provided. Controls have Vice Chancellor • Reiterate with staff the requirements been put in place on Special Assistant set out in the Business Process. applications. to the • Establish an audit process to • System Office will conduct Chancellor/ periodically review manual a mandatory training. Presidents residency changes to verify • Queries will be created. compliance. Campuses are to complete • Review the listing of 107 personnel an audit monthly. authorized to remove residency • System Office will verify holds. access with campuses. • Reiterate to staff authorized to • System Office will verify Implemented process backdated drops the access with campuses and importance of capturing the details will conduct a mandatory of the transaction with support. training. • Collaborate with the Office of • A query will be created to Technology Services to identify a run daily for campuses to control to prevent or detect a future review future dated entries. dated entry. • Training to emphasize to • Clarify procedures for submitting do drops timely based on drop requests regarding a student’s the student’s last day of last day of attendance. attendance. • Determine whether and how • Student records should be Implemented documentation to support residency notated. changes should be retained and • System Office will develop revise the Business Process as a business process and an appropriate. associated tuition appeals • Determine whether tuition appeals timeline through based on residency status are collaboration and approval permissible system-wide. from campuses. 2020-01 4/15/20 Minors on • Adopt a policy governing the Under consideration. Incomplete/ Campus reporting of child abuse and neglect ongoing and require each employee to Presidents/ report. Vice Chancellor • Provide staff with periodic training in Special Assistant the prevention and recognition of to the sexual abuse and other child Chancellor/ molestation symptoms and on Vice Chancellor procedures for the reporting of of Academic suspected abuse. Success • Comply with Texas Education Code §51.976 requirements for reporting. • Establish guidance to operationalize Under consideration. Incomplete/ Policy II.D.2. Minors on College ongoing Premises and develop procedures, as appropriate. • Identify the forms required to be used, clearly articulate their purpose, and implement controls to ensure completion and submission of forms with sanctions established for noncompliance. • Establish controls to ensure Under consideration. Incomplete/ documentation of Discovery College ongoing staff completion of background checks, mandatory trainings, and training related to Texas Education Code §51.976 requirements. • Determine a staff to student ratio and document the methodology to ensure consistent application. Page 3 of 14 Lone Star College Audit and Consulting Services Annual Report Fiscal Year 2020 Project Name & Report Responsible Summary of Corrective No. Date Party Summary of Recommendation(s) Action(s) Status • Determine whether Discovery Under consideration. Incomplete/ College program will continue to ongoing use the Discovery College Program Participant Release and Indemnification Agreement requiring witness signatures. • Decide whether to develop a Under consideration. Incomplete/ Discovery College Program ongoing handbook instead of separate campus handbooks. • Review the inconsistencies noted and determine which practices are required for all campuses. • Continue with efforts to standardize Under consideration. Incomplete/ early college high school ongoing agreements. • Provide campuses with additional guidance to evidence compliance. 2020-02 8/6/20 CARES Act - • Complete the necessary research to • School deemed ineligible. Implemented Student determine the eligibility of the • The iStar record for the Financial Aid identified suspect high school. organization was updated. Grant Desk • If the school is deemed ineligible for Review financial aid, update iStar records to indicate as ineligible. Vice Chancellor • Capture information from the • Modified our process to Implemented Special Assistant CARES Act Student Funding include a PDF of the to the Chancellor applications prior to their 90-day approved application. void to maintain a record of the • Additional guidance has information provided by a student. been given with the • Provide the application review team examples of computer with additional direction and purchase, higher speed documentation for increased internet, etc... consistency in the evaluation • The guidance provided to process. students is what was • Provide students additional provided by the guidance on how to respond to Department of Education. If CARES Act Student Funding students email the CARES application question 1. Also Act email box, we can consider allowing students the respond that more detail opportunity to provide additional information is needed. information. • The staff members were • Require completion of the “Office informed to complete all Only” portion of the CARES Act parts, including the “Office Student